Nike'S Business Has Been Brought Back To Market.

After rising last Friday,

The group released its third quarter earnings forecast for the 2018 fiscal year, with a stock price of 7%, and Randal Konik, a retail analyst at Jie Fu Lei group, wrote in a report to the customer: "Nike's business is back on track."

As of the third quarter of February 28th, Nike group's revenue grew by 6.5% to 8 billion 984 million US dollars, which was mainly driven by the growth of the international market and the Greater China region, and FactSet expected to earn $8 billion 850 million.

However, Nike suffered a net loss of $921 million in the quarter because of the one-time cost of $20 billion in the US tax reform during the period.

If this is ruled out, Nike's earnings per share are 68 cents, 15 cents higher than the forecast, according to analysts from Thomson Reuters.

Nike also released strong sales expectations.

Andy Campion Campion, chief financial officer, said at a conference call that inventory has been reset and orders for Nike partners in North America are increasing. He expects that the current decline in North American income will be basically the same as last year in the fourth quarter and will grow again in the first half of the year.

This confidence stems from the launch of Nike in the past quarter.

Some new product combinations, including Nike React, Air VaporMax extension series VaporMax 2 and Utility, as well as the first woman AJ, AF series "1 Reimagined", which correspond to running, lifestyle and basketball categories.

1 Reimagined

We have previously reported that Nike is facing the problem of lack of innovative products and its frequent low price promotions.

It can be seen that Nike's gross margin growth has stagnated and profit margins have declined, reflecting the lack of a strong thousand dollar shoe on the shelves.

And CEO Mark Parker said at the conference that the company is continuing to expand the VaporMax style and plan to build it into a "performance shoe with a price of more than $100."

VaporMax Utility

In addition to VaporMax, Nike's spring listing of another Air product AirMax 270

As for React, as a product that Nike plans to compete with Boost, according to the earnings conference, "we initially provided products to Nike+ members and sold out in a few hours.

When we expanded the supply, we sold stock for a few weeks in just four days.

We will take advantage of this demand in the fourth quarter. "

Nevertheless, such a result is not surprising for Nike's effort to launch a trump card product.

Basketball is another category that Nike has focused on in the third quarter.

With the launch of Kyrie4 and PG2 and the first season as official partner of NBA, according to Mark Parker, the growth rate of basketball category has reached two digits. This is the category that Nike has been declining in the past few quarters.

A landmark time is NBA's all star weekend in Losangeles, Nike's sales limit of Snapchat.

It was soon sold out - but it needs to be pointed out that Adidas, who sees basketball as the next growth point, has spent a lot of effort on marketing this weekend, which indicates that the competition for this category will become more intense in the future.

The first women's AJ and AF series "1 Reimagined" are investments in women and basketball market. At present, no specific market reaction can be seen.

However, it is worth mentioning that Nike had recently fallen into a female employee's complaint against the workplace environment, and the company launched an internal investigation, prompting two executives to leave.

However, there is also a view that the departure of brand President Trevor Edwards and vice president Jayme Martin is also related to Nike's recent sluggish performance and the stagnation of gross margin growth.

In addition, there was also a takeover of New York consumer data analysis firms Zodiac, which was announced along with the financial results.

Nike has worked with Zodiac for several months, which means that Nike will further accelerate the digital pformation and enhance data analysis capabilities.

Zodiac official website shows that the company is good at predicting individual future behavior based on different data models and consumer analysis.

According to the world clothing and shoe net, last December, Nike launched the SNKRS APP Mark Parker in China. Mark Parker revealed that the first month's downloading was 200 tens of thousands of times. "Now Nike hopes to get more value from every digital customer. First, we pay attention to the super fans: Nike+ users and users, their average cost is Nike.com times of shoppers."

Meanwhile, Nike announced that it will launch another new retail application in two cities in Losangeles and Portland for testing in the fourth quarter. It will automatically identify consumers' recent browsing Nike products, provide inventory information for nearby stores, and consumers can directly purchase and pay through applications. This APP may be promoted to global stores in the future, or as an updated version of SNKRS.

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